Projection systems have contrast needs that are continually increasing while the projection system marketplace desires more cost effective components and system configurations. These projection systems liquid crystal panels for modulating red, green, and blue light (i.e., the primary colors) or other light spectra, wherein the liquid crystal panels are compensated with one or two retarder films per panel. The less expensive and lower contrast projections systems use a single retarder film per panel to provide compensation, while the more expensive and higher contrast projection systems use a retarder film on each side of the panel for compensation. Existing compensation techniques, however, do not meet the increasing contrast needs and cost limitations imposed by the marketplace for projection systems.